The government began considering measures to bail out the financially troubled Long-Term Credit Bank of Japan, on the belief that it will be unable to rehabilitate on its own, Kyodo News reported Friday, quoting government sources.
The move comes at a time when LTCB, one of the three long-term credit banks in Japan, is suffering from client cancellations of bond contracts amid worries about the bank's financial standing, the sources told Kyodo.
Possible options include merging the LTCB with Nippon Credit Bank, another long-term credit bank now under a restructuring process, the sources said. Both LTCB and NCB categorically denied that merger talks are under way. A senior Finance Ministry official also denied that the ministry is taking any initiative in an LTCB bailout.